What is Layer-2 Blockchain?
Learn about what is layer-2 blockchain and its advantages for the cryptocurrency industry
The purpose of layer-2 is to provide better network scalability. With this approach, transactions on the Ethereum blockchain can be processed instantly. The blockchain is more efficient, allowing for more transactions. It also makes a transaction more traceable. In addition, this solution can help developers work efficiently with large amounts of data.
Another use for layer-2 blockchain solutions is to eliminate the need for gas fees, which are a major drawback for users of the Ethereum network. By taking transactions off the base layer, gas costs will be reduced, allowing for lower transaction costs. While the base chain will still serve as the final arbiter in disputes, this approach would free up processing resources while still providing the security and decentralization that are needed by the blockchain.
One of the advantages of layer 2 is that it can be used to scale existing networks. Unlike layer-1 blockchain networks, layer 2 networks have no scaling issues. Instead, they simply serve as the foundation for other blockchain projects. This allows developers to develop advanced apps that run on a layer-2 network. Several popular examples of layer 2 solutions include Polygon (MATIC), OMG Network (OMG), Celer (CELR), and Loopring (LRC).